Why people prefer Individual Health Insurance over Corporate

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Losing a job can be a nightmare, but what’s truly devastating is living without health insurance in this uncertain life. It’s even worse when you’re covered under Health Insurance corporate plans and fired from a job. That’s where Personal Health Insurance outperforms Corporate health plans. Deep dive into the article to know why people prefer Individual Health Insurance over Corporate Health Insurance.

Understanding the factors that make Individual Health Insurance better than Corporate Health Insurance

When it comes to the financial security of an individual or family, Health insurance policies should always rank high on the priority list. But even under the umbrella of Health insurance policies, there are many schemes included. Amongst them, Individual Health Insurance and Corporate Health Insurance schemes are always the topics of debate. Constant marketing and financial awareness of upcoming generations have instilled the importance of getting insured, but still, better schemes are lacking.

Since the majority of the working force is engaged in the corporate world, they receive Health insurance corporate plans from the employer itself. As it is cheaper than individual health insurance, employees remain content with its minimal benefits without looking for more covers. This limits their intent to get insured individually and restricts them from exploring further. But relying entirely on such Health insurance corporate plans is not advisable.

Your family’s medical history will be considered by the insurance company at the time of  determining the risk of the insured developing the same. Because of this, if and when the need occurs, this sum may not be sufficient to alleviate your financial strain, and you may be forced to tap into your savings, which would eventually negate the point of purchasing insurance.

Hence, with increasing awareness about insurance and its concept, individual health insurance policies are preferred more as compared to corporate health insurance. 

Here’s a detailed comparison between both insurance types on various parameters to help you choose a better one:

  • Tailor-made insurance policy 

Personal Health Insurance policies can be custom-made according to the medical convenience of the policyholder and their capacity. It offers the benefits of personal add-on covers, reduced premiums, on the other hand, adding other family members as per convenience. This helps in getting the policy as per one’s preference without compromising on any feature of the insurance scheme.

On the contrary, Corporate Insurance Plans only have a handful of benefits without any customisation for beneficiaries. It’s a rigid policy as compared to Individual Health Insurance.

  • Premium Cost

Health Insurance corporate plans seem economically appealing, but their benefits are very much restricted. It only covers the bare minimum services with regular cost. Individual Plans might seem costly at first, but their benefits outweigh their initial cost. With all the customised plan options and full coverage of medical expenses, the cost of individual plans seems worth every penny spent.

  • Job Security

Corporate Plans are a part of perquisites to every employee of the organisation. That means it’s only available as far as the job is in the hands of an employee. A sudden dismissal from the job can make someone’s life risky without any health insurance. Therefore, it’s better to get insured on your own rather than relying on the employer for your health. There’s no harm in owning personal health insurance policies over and above a corporate one to be double insured.

  • No Claim Bonus

One of the setbacks of corporate insurance is that it doesn’t offer any on the accumulated amount. After leaving the organisation, the benefits can’t be carried forward to another organisation, and this way, all the accumulated amount to date is lost. Such an amount that’s accumulated over the years can’t be claimed under corporate insurance, which is obviously offered under a personal insurance scheme.

  • Post-retirement risk

Once you’re out of the organisation, you’re out of the benefits of corporate insurance as well. And it’s a nightmare to be in your late sixties and not insured. Over and above, insurance companies put entry age restrictions and heavy premiums for aged individuals as it’s risky. Hence, it’s always a good idea to have personal insurance along with corporate insurance when young rather than relying on it later in life and regretting not taking it.

Health insurance policies are always a great investment for securing yourself and your family against any huge medical expense or any unforeseen circumstances. Be it health insurance, corporate plans, or Individual plans; one can never go wrong with any of them. You can check various individual and corporate health insurance plans by visiting Bajaj Finserv’s official website. Still, when Individual Plans are better, it comes to extra coverage and mental relief for the family’s future. Individual Insurance plans are always the one to vouch for despite their high premium cost. Because it serves assistance worth every penny spent at difficult times. 


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